Smart Software Helps Honda Trading Manage Its Supply Chain
Manufacturing Spotlight
Modern Materials Handling , July 1, 2000,

Here's a further look at the subject of our July 2000 Manufacturing Spotlight.

Managing a complicated supply chain for a large automotive maker such as Honda is no easy task. It requires sophisticated software, as parts management alone is often performed up to 4 months in advance. Honda Trading America uses distribution software (Blinco Systems, www.blinco.com) to manage product flow within its network.

The software provides inventory management, tracks the various types of materials in the system and their locations, maintains databases of customers, provides accounting and profitability profiles, and also includes important reporting functions. Honda additionally uses the software to run "what if" scenarios, based on what might happen if conditions change.

"It allows us to be creative and gives us tools to manage our inventories," says Greg Norval, senior executive for Honda Trading America.

Electronic data interchange (EDI) is also integrated with the system, so that materials purchased are updated upon receipt via advanced ship notices (ASN). Raw materials and completed products are matched to the original purchase orders.

The system also provides full monitoring of the entire supply chain, so that every product is tracked continuously and the full system is updated every 24 hours.

"It gives us visibility into what is going on," says Norval. "At any time we can see what our inventory levels are."

Before adding these software functions, inventory was updated only monthly. The real-time visibility allows Honda to react to problems and make appropriate adjustments.

"If there is a shortage or if Honda increases production, we have accurate data to make our judgements," adds Lisa Gimeson, manager of the steel group. "Problems occur with any supply chain. How you deal with it determines if you have a good system."

Better data gives Honda Trading America a competitive advantage, according to Norval.
"If we control quality, availability, and delivery, the rest falls into place.

For related information, please go to:
Article: The Driving Force Behind Honda
Honda Trading America Case Study